1 July 2018
Media Release - #2018068, 2018

Delivering on Budget measures

Turnbull Government delivering for Australians

Key Turnbull Government measures coming into effect on 1 July will help Australian families with the cost of living, grow our economy by freeing up businesses to invest and employ more Australians, boost essential services and protect consumers.

These measures are part of the Turnbull Government’s plan for a stronger economy.

Tax cuts for working Australians

From 1 July, the Turnbull Government will deliver tax relief for low and middle income earners. Over 10 million taxpayers will get tax relief, with 4.4 million Australians receiving the full $530 benefit of the new low and middle income tax offset.

Our tax plan's first priority is low and middle income earners because we understand that the benefits of a growing economy have not yet flowed to all.

They will enjoy the benefits of lower taxes for many years and those benefits will be locked in during stage two of our tax plan which addresses bracket creep.

In addition, 200,000 Australians will be saved from paying higher tax, with the $87,000 tax threshold increasing to $90,000 on 1 July.

Tax cuts for businesses

Around 4,000 businesses will have their tax rate reduced to 27.5 per cent from 1 July.

These businesses with turnovers between $25-50 million employ around 410,000 Australians.

This follows delivery of tax cuts for businesses with turnovers less than $25 million from 1 July 2017.

This means that from 1 July, around 940,000 businesses will face a tax rate of 27.5 per cent. These companies employ almost 5 million Australians.

This plan is creating the right conditions for Australian employers, especially small businesses, to grow and create more jobs.

In the Budget the Government announced small businesses will also continue to be able to deduct assets that cost less than $20,000 for a further 12 months. The legislation is currently before the Parliament.

Levelling the playing field for Australian business

Australian retailers will be able to compete on fairer terms with multinationals with new laws extending the goods and services tax (GST) to low value imported goods taking effect from 1 July.

Under the new arrangements, offshore businesses with an Australian turnover of $75,000 or more are required to charge and remit GST to the Australian Taxation Office on sales of low value imported goods to consumers in Australia.

Applying the GST to goods costing $1,000 or less is a win for Australian retailers. It removes the unfair advantage for foreign businesses and the level playing field for Australian businesses will create more jobs and opportunities.

This measure builds on the Turnbull Government’s broader reforms to ensure a fairer tax system.

Cracking down on unfair credit card practices

Credit card providers will be forced to scrap unfair practices as part of the Turnbull Government’s crackdown on predatory credit card practices.

From 1 July, unsolicited credit card limit increase offers will cease, meaning Australians will be required to opt-in, rather than out, to be offered credit limit increases.

Making banks more accountable

Banks and lenders will be more accountable for their actions under the Banking Executive Accountability Regime (BEAR) to commence on 1 July.

The BEAR imposes higher standards of behaviour on banks and their senior executives and directors.

Where these obligations are not met, Australian Prudential Regulation Authority (APRA) will be empowered to issue substantial fines or disqualify the senior executives and directors responsible. It is part of a broader suite of financial services reforms delivering on our commitment to put consumers first.

New child care package

Many families will be hundreds if not thousands of dollars a year better off under new child care subsidies from 2 July.

The Turnbull Government’s new child care and early learning subsidies will benefit almost one million families and it’s estimated around 230,000 families will increase their workforce participation.

The extra $2.5 billion investment will mean more subsidies for families working the most and for families earning the least, scrapping the annual rebate cap for most families, as well as an hourly fee cap to keep downward pressure on fee increases.

Boosting essential health services

From 1 July, breast cancer patients will be able to access Kisqali on the PBS, previously they would need to have paid $71,820 a year. Now, they will only pay $39.50 per script while concessional patients will pay $6.40 per script.

A Medicare rebate will be available to 26,000 men a year who need to get an MRI to check for prostate cancer, while a whooping cough vaccine will be available for every single pregnant mum in the country.

Also starting tomorrow, Family Tax Benefit recipients whose children do not meet immunisation or health check requirements will have their payments reduced by up to $737.30 per year per child.

Reducing pressure on housing affordability

First home buyers will be able to make withdrawals under the First Home Super Saver Scheme to purchase a home from 1 July. Voluntary contributions of up to $15,000 per year and $30,000 in total, along with deemed earnings, can be withdrawn.

The scheme has the potential to boost the deposit savings of first home buyers by at least 30 per cent, by using the tax incentives and earnings potential within their superannuation account.

Additionally, older Australians will be given more flexibility in downsizing their homes from 1 July, freeing up larger homes for younger families.

Those aged 65 and older will be able to make a non-concessional contribution of up to $300,000 to their superannuation after selling their home. This will be in addition to any other contributions they are eligible to make.

Supporting Australians to work

From 2 July, the successful ParentsNext program will be expanded to help more parents with young children move into work once their children are at school.

The program has been successfully operating in 10 locations across Australia since April 2016 and the Government is investing $351 million in its expansion.

Mature-age Australians looking for work or preparing for a new career, will benefit from a new Career Transition Assistance (CTA) program commencing from 2 July.

The CTA program will help older workers become more competitive in their local labour market through tailored, intensive workshops to build on their transferable skills.

National Redress Scheme

The National Redress Scheme for survivors of institutional child sexual abuse will begin on 1 July.

The scheme will run for 10 years, offering access to psychological counselling, a direct personal response from the responsible institution, and a monetary payment.

Country of Origin food labelling

New country of origin labelling requirements become mandatory on 1 July ensuring Australian consumers have clearer food labelling to help them make more informed choices about the food they buy.

The new requirements mean food labelling will include whether food is made, grown, produced or packed in Australia or in another country.